Saab and Bombardier Discuss Building Gripen Fighter Jet in Canada

Strategic Insights -

Sweden's Saab AB and Bombardier Inc. are in discussions to build the Saab Gripen fighter-jet in Canada, a potential move that could create thousands of jobs and mark a significant shift in North America's defense procurement landscape. According to Bombardier, the talks are under way after Saab chief executive officer Micael Johansson said the company wants to expand production capacity of the multirole supersonic jet outside of Sweden. Canada is one of several countries being considered for potential assembly, with Bombardier open to providing local expertise if the government decides to go this route.

Key Takeaways:

  • Saab and Bombardier are in discussions to build the Gripen fighter-jet in Canada, with the potential to create thousands of jobs.
  • The talks are part of Saab's efforts to expand production capacity of the Gripen outside of Sweden, with several countries being considered for potential assembly.
  • Canada is one of the countries that could assemble the aircraft, with Bombardier open to providing local expertise if the government decides to go this route.
  • The Gripen production joint venture is being worked out between Saab and Bombardier, according to a senior Canadian government source.
  • Saab Canada president Simon Carroll said the company is continuing discussions with Bombardier for a range of opportunities in Canada, including manufacturing and furthering their scope of work with Bombardier.
  • The potential clients for Canadian-made Gripens are the Royal Canadian Air Force and Ukraine's military.
  • Canada has committed to buying 16 F-35 stealth fighters from Lockheed Martin Corp., with options to buy another 72.
  • Saab is willing to have the Gripen built under license outside Sweden as new orders arrive.
  • The Brazilian aerospace company Embraer S.A. is making 15 Gripens as part of the country's initial order of 36 jets.

Statistics:

  • 8,000: The number of employees in the aerospace division of Saab in Sweden, though not all work on the Gripen.
  • 10,000: The number of employees of Bombardier in Quebec.
  • 2,000: The number of employees of Bombardier at the Pearson site in Toronto.
  • 3: The number of GlobalEye airborne early warning and control (AEWC) military aircraft sold to Sweden.
  • 5: The number of GlobalEye aircraft sold to the United Arab Emirates.
  • 16: The number of F-35 stealth fighters that Canada has committed to buying.
  • 72: The number of additional F-35s that Canada has options to buy.
  • $19 billion: The total value of the F-35 contract.

Sources:

  • The Globe and Mail
  • Bombardier Inc.
  • Saab AB
  • Swedish Air Force
  • Hungarian Air Force
  • Brazilian Air Force
  • South African Air Force
  • Ukrainian military
  • Canadian government